Shares of Samsung Electronics extended steep losses on Wednesday after a report citing multiple sources familiar with the matter said the timeline for full-scale production at the company’s Taylor, Texas chip facility has slipped, with a significant output ramp-up now forecast for early 2027 rather than later this year.
Seoul-listed shares plunged nearly 12% to 172,100 won by 03:57 GMT, after falling about 10% in the prior session. The drop follows accounts that, while pilot operations have started at the $37 billion plant, there is no clear start-of-production milestone and that schedules and factory utilisation have shifted.
The reported delay stands in contrast to earlier guidance that Samsung’s second-generation 2-nanometer chips, known internally as SF2P, would move into mass production this year. Company commentary on the matter sought to clarify the terminology around "production," saying references to production should be read as the completion of preparations for mass manufacturing by the end of 2026. Samsung added that the Taylor plant would be ready to operate by then.
The Taylor project, first announced in 2021, has encountered multiple postponements even after the plant secured significant chip orders. Among the contracts reported previously is a $16.5 billion deal with Tesla Inc (TSLA), underscoring the plant’s importance to large downstream customers.
Reports indicated that while pilot operations had commenced, the company has not confirmed a distinct start-of-production milestone. Other accounts pointed to shifting schedules and utilisation challenges inside the factory as reasons behind the revised ramp timeline.
For investors and market participants, the shift in the Taylor plant timeline has been reflected immediately in Samsung’s share price, which recorded back-to-back double-digit percentage declines across two sessions. The market reaction underscores how capital-intensive semiconductor capacity projects and timing risks can affect listed equity valuations when execution expectations change.
Context and market implications
- Reported delay in Taylor facility production ramp to early 2027, not later this year.
- Samsung states preparations for mass manufacturing are expected to be finished by end-2026 and the plant will be ready to operate then.
- Shares fell nearly 12% to 172,100 won by 03:57 GMT after a 10% decline the previous session.
The situation presents clear operational and timing uncertainties for Samsung’s semiconductor capacity expansion. The company’s clarification frames "production" as the completion of preparations for mass manufacturing, while other accounts point to ongoing schedule and utilisation issues at the site.